CBTA Allied Square Table: Travel Management Trends and

2013 Hotel RFP Preview

CBTA Allied Square Table: Travel Management Trends and 2013 Hotel RFP Preview Mary Ann McNultyExecutive Editor The BTN Group

CBTA Allied Square Table: Travel Management Trends and 2013 Hotel RFP Preview

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AGENDA

It’s Still The Economy

…But Now Global Impact

Corporate Travel Demand, Supply

Corporate Travel Contracting

Policies, Mandates and More

Hot Topics: Open Booking, Mobile, ?

RFP Season Preview

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FEDS: TRAVEL STRONG

US Federal Reserve: travel and tourism activity "strong" across many reporting districts, with hotel and convention bookings continuing to "exceed last year's pace.“

“Overall economic activity continued to expand at a modest to moderate pace in June and early July. The Atlanta, St. Louis and San Francisco districts reported modest growth, while Boston, Chicago, Minneapolis, Kansas City and Dallas described economic activity as advancing moderately.”

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ECONOMIC INDICATORS

Fed Says: Deceleration

Amadeus CEO: “Next 6-12 Months Tough”

Low Job Growth

Election Wait-and-See

Oil prices and impact

Will Corps Slow Travel Spending??

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ECONOMIC INDICATORS

Up: AirPlus, Marriott, UK Guild of TMCs

Amex corporate travel spending down 4%, 2nd

quarter in a row

HRG: TRX down 3%, spending down 7%

ARC: mega TRX in June -6.5%, largest drop in 32 months

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AMEX TRAVEL SALES SLOW

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ARC: DECLINING AIR SALES

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HEADLINES: Booking Volume

Pegasus: Hotel reservations booked via GDS in June declined 10.6% worldwide, by 13.9% in North America.

Why? Cycles

Average rates paid for hotels through GDS up 3% globally year-over-year, by 6% in NA

Outside NA, average rate down by 1.7% as June GDS bookings fell 5.9%

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GBTA: Impact of Uncertainty

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AT TRAVELER LEVEL

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Mandates & Policy Compliance

Policy compliance focus last 18 months

Non-reimbursement, partial reimbursement

Pre-trip approvals, audits, communications

Is 50% good enough?

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Managed vs. Unmanaged

Open Booking concepts

Supplier site bookings, but…

At negotiated rates

Data collected

Concur, ProcureApp, GDSX

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Mobile and More

Mobile growth adoption skyrocketing

Surpassing other adoption

Booking, expense reporting, messaging

Still, numbers low

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2013 Hotel RFP Preview

Hotels: Corporate rate hikes 7%

Buyers: Expect increases closer to 3.5%

~ Bjorn Hanson, NYU Tisch Center for Hospitality divisional dean

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RFP Considerations

Are negotiated rates way to go?

Best way to secure, load, audit rates?

Which RFP tool to use?

Benefits of negotiated rates?

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HEADLINES: Marriott

Marriott CEO: Rate increases in high single-digit percentages in upcoming negotiations.

Corp. rates remain “meaningfully lower than in 2007.”

Rates +4.3% in June quarter vs. March

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HEADLINES: Starwood

Starwood CEO: 2013 Corp. Rate Hikes To Outpace Last Year’s

Starwood ADR Last Quarter:

+ 3.8% in North America

+ 1.1% in Latin America

- 7% in Europe

- 4.5% in Africa and Middle East

Flat in Asia-Pac

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INTL. BIZ TRAVEL FORECAST

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CWT 2013 COST FORECAST